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Old 01-21-2011, 08:09 AM   #7
Greg Hill
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Join Date: May 2006
Location: Louisville , KY
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Default Re: The IRS and NHRA, you gotta see this.

All of you need to read this complaint and understand it. NHRA has been operating with no accountability to anyone over the last 30 years. They have all those high salaries because they pay themselves whatever they want to because they decide to. That being said the big money is on the expense side of the ledger. If you look at tax returns you will notice that expenses mirror revenue. In other words as revenue goes up so do expenses and as revenue goes down so do expenses. Some of that would be normal because some expenses are variable, however most of their costs are fixed and don't change that much from year to year.

Taking a look at their expenses for 2008 a couple of things really jump out. The first is office expense at $15,747,739. Now that doesn't include any salaries or rent or even IT. What in the hell could you spend 15 mil on in office expense? Another is $4,046,243 on travel. Other expenses are around 10 mil. Salaries, wages and benefits are around 20 mil. Advertising and promotions is 24 mil. The big question is who benefits from all this money? How about the 3.3 mil in insurance costs that's only about 2.75% of their operating expenses?

This whole deal reminds me of one of those fund raising groups that call you up raising money for police or firemen that when you check into them uses 90% of what they collect for expenses and only 10% goes to the people they are supposedly raising money for. They are not using the money they make for the good of our sport but for their own personal gain.
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